Well, I talk from an informed pint of view also, offshore piloting. With friends in the industry from policy making to drilling the oil to sales and contract management.

Even if you have a JV, the oil isn't free... It has to be paid for and then refined (refinery is also a business that WILL NEVER REFINE FOR FREE), no matter how we look at it. Someone has to pay the cost. Ok, Govt. buys local oil/local fuel and gives it out for free or lowered price (which means govt is loosing money already) guess what, its the same people just like you and I that will take this low price fuel and find a way to sell it higher to outsiders, it is the same you and I that will sti say REMOVE SUBSIDY, same you and I that will still say, WHAT IS GOVT DOING
In the end a lot of problem lie on the shoulder of we the followers (1st, it's from among us that leaders are chosen, they are not aliens).

macaranta:


Bro, I am a mechanical engineer that have worked in the oil and gas industry so I know what I'm talking about.

The point you referenced in one above is, I assume under futures contract of which Nigeria is already benefiting. A futures contract will sell crude to a destination country at a fixed cost for a long period of time e.g 20years before it is reviewed. Nnpc is a jv in almost all the omls, they retain a large percentage which is for regulatory and monitoring purposes, not everything drilled must be sold. It's that simple.

Your point Opec regulations refers to exports not local consumption restrictions. You are capped at exportation so as to regulate price not that it's to starve the local market or the necessary raw materials for their own refineries.

Diesel and pms is sold at a fair rate already, no Nigerian has ever demanded that it should be free so I don't know what the other dude is on about "poor people". Most poor people don't even have need for diesel, just petrol.